Lloyds, Halifax and Bank of Scotland customers warned overdraft shake up could see rate's double - check if you're affected

The Lloyds Banking Group, which owns all three brands, says most customers will see a change in the interest they pay.

All customers will be on (or moved to) one of these:

- 19.9 per cent
- 29.9 per cent
- 34.9 per cent (temporary rate for six months only; after that it goes up to 39.9 per cent)
- 39.9 per cent
- 44.9 per cent(temporary rate for six months only; after that it goes up to 49.9 per cent)
- 49.9 per cent

The rate customers have been moved to is based on an "affordability assessment".

This includes their credit history and how they use any accounts they have with the banks – though the group says 39.9 per cent will remain its standard rate.

Most customers with an arranged overdraft will see their rate stay the same or fall - but others will see an increase.

Some Club Lloyds customers will see their rate nearly double, from 27.5 per cent to 49.9 per cent.

Those with an increasing rate saw it rise last Friday.

Each situation is different but customers will first be put on a 34.9 per cent or 44.9 per cent rate for six months to "limit the impact" of the increase; after that, their rate will rise again to either 39.9 per cent or 49.9 per cent.

If someone's rate is going down, they would have been informed about the change in mid-May.

The Money Saving Expert team have given a number of options to help customers to try to reduce costs.

Those affected should try and switch to an account with an interest-free overdraft.

For example, First Direct offers many a £250 zero per cent overdraft (39.9 per centabove), while Nationwide offers newbies to its FlexDirect account a zero per cent overdraft of up to £1,500 for the first year (39.9 per cent after).

Alternatively, they can try a specialist zero per cent 'money transfer' credit card.

If someone rate is going up and they're struggling, they are encouraged to talk to their bank – and complain if necessary.

The Banks will shut at least 237 of their bank branches in 2024 and 2025, the Group has confirmed.

They had a combined 1,101 branches as of June 28.